CHARLOTTE, N.C., Aug. 7, 2017 /PRNewswire/ --
Second quarter 2017 highlights:
- Second quarter net sales were $737.3
million, an increase of 10% over the prior year
- Second quarter earnings were $103.3
million, or $0.92 per diluted
share
- Second quarter adjusted EBITDA was $218.9 million, an increase of 15% over the prior
year; adjusted diluted earnings per share from continuing
operations of $1.13, an increase of
22% over the prior year
- Completed the $250 million
accelerated share repurchase program, retiring approximately 2.3
million shares during the first half of 2017
|
Three
Months Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
In thousands,
except per share amounts
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net sales
|
$
|
737,258
|
|
|
$
|
669,327
|
|
|
$
|
1,459,321
|
|
|
$
|
1,326,538
|
|
Net income from
continuing operations
|
$
|
113,689
|
|
|
$
|
95,586
|
|
|
$
|
176,346
|
|
|
$
|
313,822
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
103,333
|
|
|
$
|
(314,821)
|
|
|
$
|
154,546
|
|
|
$
|
(86,635)
|
|
Adjusted
EBITDA
|
$
|
218,941
|
|
|
$
|
190,471
|
|
|
$
|
430,317
|
|
|
$
|
382,504
|
|
Diluted earnings
(loss) per share attributable to Albemarle Corporation
|
$
|
0.92
|
|
|
$
|
(2.78)
|
|
|
$
|
1.37
|
|
|
$
|
(0.77)
|
|
Non-operating pension and OPEB items(a)
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
Non-recurring and other unusual items(b)
|
0.21
|
|
|
0.19
|
|
|
0.82
|
|
|
(0.73)
|
|
Discontinued operations(c)
|
—
|
|
|
3.52
|
|
|
—
|
|
|
3.38
|
|
Adjusted diluted
earnings per share from continuing
operations(d)
|
$
|
1.13
|
|
|
$
|
0.93
|
|
|
$
|
2.18
|
|
|
$
|
1.88
|
|
|
See accompanying
notes (a) through (d) to the condensed consolidated financial
information and non-GAAP reconciliations.
|
Albemarle Corporation (NYSE: ALB) reported second quarter 2017
net sales of $737.3 million, earnings
of $103.3 million and adjusted EBITDA
of $218.9 million.
"The Albemarle team delivered
another quarter of year over year growth while meeting important
milestones toward our long-term growth strategy," said Luke Kissam, Albemarle's Chairman, President and CEO.
"Total company adjusted EBITDA grew 15% and adjusted diluted EPS
grew 22% over the second quarter of last year. This marks the sixth
consecutive quarter of year over year revenue growth for the
corporation. Our Lithium business continues to deliver strong year
over year volume growth, and our major lithium capital expansion
projects and exploration for new lithium resources remain on
schedule."
Outlook
Based on our strong performance in the first half of 2017, we
confirm our guidance of $2.90 to $3.05
billion in net sales, adjusted EBITDA of $835 to $875 million, and adjusted EPS per
diluted share of $4.20 to $4.40.
Results
Second quarter 2017 earnings were $103.3
million, or $0.92 per diluted
share, compared to a net loss of ($314.8)
million, or ($2.78) per
diluted share in the second quarter 2016. The increase in 2017 was
primarily related to a loss from discontinued operations of
$3.52 per diluted share in 2016, as
well as the increase in results of our Lithium and Advanced
Materials segment. Second quarter 2017 adjusted EBITDA increased by
$28.5 million compared to the prior
year. Second quarter 2017 adjusted net income from continuing
operations was $126.5 million, or
$1.13 per diluted share, compared to
$105.1 million, or $0.93 per diluted share, for second quarter 2016.
See notes to the condensed consolidated financial information for
further details. The Company reported net sales of $737.3 million in second quarter 2017, up from
net sales of $669.3 million in the
second quarter of 2016, driven by the favorable impact of higher
sales volumes and pricing impacts of our Lithium and Advanced
Materials segment, partially offset by the impact of the
divestiture of the minerals-based flame retardants and specialty
chemicals business and unfavorable currency exchange impacts.
For the six months ended June 30, 2017, earnings were
$154.5 million, or $1.37 per diluted share, compared to a net loss
of ($86.6) million, or ($0.77) per diluted share for the six months
ended June 30, 2016. The increase in
2017 was primarily driven by a loss from discontinued operations of
$3.38 per diluted share in 2016, as
well as earnings growth in our Lithium and Advanced Materials
segment. For the six months ended June 30, 2017, adjusted
EBITDA was $430.3 million compared to
$382.5 million for the same period
2016. For the six months ended June 30, 2017, adjusted net
income from continuing operations was $245.5
million, or $2.18 per diluted
share, compared to $212.2 million, or
$1.88 per diluted share, for the same
period 2016. See notes to the condensed consolidated financial
information for further details. The Company reported net sales for
the six months ended June 30, 2017 of $1.46 billion, up from net sales of $1.33 billion, driven by the favorable impact of
higher sales volumes in each of our three reportable segments and
pricing impacts of our Lithium and Advanced Materials segment,
partially offset by the impact of the divestiture of the
minerals-based flame retardants and specialty chemicals business
and unfavorable currency exchange impacts.
Quarterly Segment Results
Lithium and Advanced Materials reported net sales of
$317.9 million in the second quarter
of 2017, an increase of 36.2% from second quarter 2016 net sales of
$233.4 million. The $84.5 million increase in net sales as compared
to prior year was primarily due to favorable pricing impacts and
increased sales volumes, partially offset by $1.8 million of unfavorable currency exchange
impacts. Adjusted EBITDA for Lithium and Advanced Materials was
$132.5 million, an increase of 60.3%
from second quarter 2016 results of $82.7
million. The $49.9 million
increase in adjusted EBITDA as compared to the prior year was
primarily due to increased sales volumes and favorable pricing
impacts, partially offset by higher selling, general and
administrative costs and $1.7 million
of unfavorable currency exchange impacts.
Bromine Specialties reported net sales of $203.9 million in the second quarter of 2017, a
decrease of 1.4% from second quarter 2016 net sales of $206.9 million. The $2.9
million decrease in net sales as compared to the prior year
was primarily due to lower pricing impacts and $0.6 million of unfavorable currency exchange
impacts. Adjusted EBITDA for Bromine Specialties was $62.1 million, a decrease of 6.7% from second
quarter 2016 results of $66.6
million. The $4.5 million
decrease in adjusted EBITDA as compared to the prior year was
primarily due to lower volume and pricing impacts, unfavorable
product mix and higher selling, general and administrative
costs.
Refining Solutions reported net sales of $184.2 million in the second quarter of 2017, an
increase of 3.5% from net sales of $178.0
million in the second quarter of 2016. The $6.2 million increase in net sales as compared to
the prior year was primarily due to higher sales volumes, partially
offset by unfavorable pricing impacts due to customer and product
mix, and $1.4 million of unfavorable
currency exchange impacts. Adjusted EBITDA for Refining Solutions
was $50.1 million in the second
quarter of 2017, a decrease of 18.7% from second quarter 2016
results of $61.6 million. The
$11.5 million decrease in adjusted
EBITDA as compared to the prior year was primarily due to
unfavorable mix impacts and higher costs.
All Other net sales were $30.7
million in the second quarter of 2017, a decrease of 39.4%
from net sales of $50.6 million in
the second quarter of 2016. The $19.9
million decrease in net sales as compared to the prior year
was primarily due to the impact of the divestiture of the
minerals-based flame retardants and specialty chemicals business of
$12.9 million, as well as lower sales
volumes and a change in the pricing contract formula for the fine
chemistry services business. All Other adjusted EBITDA was
$2.4 million in the second quarter of
2017, an increase of 179.0% from second quarter 2016 results of
$0.9 million. The $1.6 million increase in adjusted EBITDA as
compared to the prior year was primarily due to lower selling,
general and administrative costs, partially offset by the impact of
the divestiture of $0.6 million.
In summary, total net sales were $737.3
million in the second quarter of 2017, an increase of
$67.9 million, or 10.1%, from second
quarter 2016 net sales of $669.3
million. The increase in net sales as compared to prior year
was primarily due to favorable pricing impacts and higher sales
volumes in our Lithium and Advanced Materials segment, partially
offset by the divestiture of the minerals-based flame retardants
and specialty chemicals business of $12.9
million and unfavorable currency exchange impacts of
$3.8 million. Total adjusted EBITDA
was $218.9 million in the second
quarter of 2017, an increase of $28.5
million, or 14.9%, from second quarter 2016 adjusted EBITDA
of $190.5 million. The increase in
adjusted EBITDA as compared to prior year was primarily due to the
impact of higher sales volumes and favorable pricing impacts,
partially offset by higher selling, general and administrative
costs and the divestiture of the minerals-based flame retardants
and specialty chemicals business of $0.6
million.
Corporate Results
Corporate adjusted EBITDA was a loss of $28.2 million in the second quarter of 2017
compared to a loss of $21.2 million
in the second quarter of 2016. The decrease in Corporate adjusted
EBITDA was primarily due to increased selling, general and
administrative costs.
Income Taxes
Our effective income tax rates for the second quarter of 2017
and 2016 of 19.0% and 22.4%, respectively, are influenced by
non-recurring, other unusual and non-operating pension and OPEB
items (see notes to the condensed consolidated financial
information). Our adjusted effective income tax rates, which
exclude non-recurring, other unusual and non-operating pension and
OPEB items, were 19.1% and 16.2% for the second quarter of 2017 and
2016, respectively, and continue to be influenced by the level and
geographic mix of income. The decrease in the effective tax
rate in the second quarter of 2017 compared to 2016 was impacted by
a variety of factors, primarily stemming from the discrete tax item
in 2016 related to a change in the Company's assertion over book
and tax basis differences of $7.6
million driven by the announced sale of the
Chemetall® Surface Treatment business. Our effective
income tax rates for the six months ended June 30, 2017 and
2016 were 20.0% and 14.8%, respectively, and our adjusted effective
income tax rates for the six months ended June 30, 2017 and
2016 were 20.7% and 18.6%, respectively. The effective tax rate in
2016 was driven down by a variety of factors, primarily low tax
gains from the sale of the minerals-based flame retardant
business.
Cash Flow
Our cash outflow from operations was approximately ($54.5) million for the six months ended
June 30, 2017, down $307.3 million versus the same
period in 2016 primarily due to changes in working capital,
including the payment of approximately $255
million in taxes related to the sale of the Chemetall
Surface Treatment business in 2017. We had $1.01 billion in cash and cash equivalents at
June 30, 2017, as compared to $2.27
billion at December 31, 2016.
During the first six months of 2017, cash on hand, cash provided by
operations and net borrowings funded $751.2
million of debt repayments, primarily related to the senior
notes, $97.8 million of capital
expenditures for plant, machinery and equipment, dividends to
shareholders of $69.8 million and a
$250.0 million accelerated share
repurchase program. As a result of the program, we received and
retired approximately 2.3 million shares of our common stock during
the six months ended June 30, 2017.
Earnings Call
The Company's performance for the second quarter ended
June 30, 2017 will be discussed on a conference call at
9:00 AM Eastern time on
August 8, 2017. The call can be accessed by dialing
888-713-4214 (International Dial-In # 617-213-4866), and entering
conference ID 17470353. The Company's earnings presentation and
supporting material can be accessed through Albemarle's website under Investors at
www.albemarle.com.
About Albemarle
Albemarle Corporation (NYSE: ALB), headquartered in Charlotte, NC, is a global specialty chemicals
company with leading positions in lithium, bromine and refining
catalysts. We power the potential of companies in many of the
world's largest and most critical industries, from energy and
communications to transportation and electronics. Working
side-by-side with our customers, we develop value-added, customized
solutions that make them more competitive. Our solutions combine
the finest technology and ingredients with the knowledge and
know-how of our highly experienced and talented team of operators,
scientists and engineers.
Discovering and implementing new and better performance-based
sustainable solutions is what motivates all of us. We think beyond
business-as-usual to drive innovations that create lasting value.
Albemarle employs approximately
4,500 people and serves customers in approximately 100 countries.
We regularly post information to www.albemarle.com, including
notification of events, news, financial performance, investor
presentations and webcasts, non-GAAP reconciliations, SEC filings
and other information regarding our company, its businesses and the
markets it serves.
Forward-Looking Statements
Some of the information presented in this press release, the
conference call and discussions that follow, including, without
limitation, product development, changes in productivity, market
trends, price, expected growth and earnings, input costs,
surcharges, tax rates, stock repurchases, dividends, cash flow
generation, costs and cost synergies, portfolio diversification,
economic trends, outlook and all other information relating to
matters that are not historical facts may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual results could
differ materially from the views expressed. Factors that could
cause actual results to differ materially include, without
limitation: changes in economic and business conditions; changes in
financial and operating performance of our major customers and
industries and markets served by us; the timing of orders received
from customers; the gain or loss of significant customers;
competition from other manufacturers; changes in the demand for our
products; limitations or prohibitions on the manufacture and sale
of our products; availability of raw materials; changes in the cost
of raw materials and energy; changes in our markets in general;
fluctuations in foreign currencies; changes in laws and government
regulation impacting our operations or our products; the occurrence
of regulatory proceedings, claims or litigation; the occurrence of
cybersecurity breaches, terrorist attacks, industrial accidents,
natural disasters or climate change; the inability to maintain
current levels of product or premises liability insurance or the
denial of such coverage; political unrest affecting the global
economy; political instability affecting our manufacturing
operations or joint ventures; changes in accounting standards; the
inability to achieve results from our global manufacturing cost
reduction initiatives as well as our ongoing continuous improvement
and rationalization programs; changes in the jurisdictional mix of
our earnings and changes in tax laws and rates; changes in monetary
policies, inflation or interest rates; volatility and substantial
uncertainties in the debt and equity markets; technology or
intellectual property infringement; decisions we may make in the
future; the ability to successfully execute, operate and integrate
acquisitions and divestitures; and the other factors detailed from
time to time in the reports we file with the SEC, including those
described under "Risk Factors" in our Annual Report on Form 10-K
and our Quarterly Reports on Form 10-Q. These forward-looking
statements speak only as of the date of this press release. We
assume no obligation to provide any revisions to any
forward-looking statements should circumstances change, except as
otherwise required by securities and other applicable laws.
Albemarle Corporation
and Subsidiaries
|
Consolidated
Statements of Income (Loss)
|
(In Thousands Except
Per Share Amounts) (Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales
|
$
|
737,258
|
|
|
$
|
669,327
|
|
|
$
|
1,459,321
|
|
|
$
|
1,326,538
|
|
Cost of goods
sold(a)(b)
|
465,164
|
|
|
421,223
|
|
|
932,139
|
|
|
835,900
|
|
Gross
profit
|
272,094
|
|
|
248,104
|
|
|
527,182
|
|
|
490,638
|
|
Selling, general and
administrative expenses(a)(b)
|
115,686
|
|
|
86,055
|
|
|
223,687
|
|
|
168,686
|
|
Research and
development expenses(b)
|
17,337
|
|
|
20,500
|
|
|
41,660
|
|
|
40,372
|
|
Gain on sales of
businesses, net(b)
|
—
|
|
|
(974)
|
|
|
—
|
|
|
(122,298)
|
|
Acquisition and
integration related costs(b)
|
—
|
|
|
19,030
|
|
|
—
|
|
|
37,588
|
|
Operating
profit
|
139,071
|
|
|
123,493
|
|
|
261,835
|
|
|
366,290
|
|
Interest and
financing expenses(b)
|
(14,590)
|
|
|
(15,800)
|
|
|
(83,103)
|
|
|
(30,914)
|
|
Other expenses,
net(b)
|
(2,710)
|
|
|
(2,297)
|
|
|
(3,504)
|
|
|
(2,250)
|
|
Income from
continuing operations before income taxes and equity in net income
of unconsolidated investments
|
121,771
|
|
|
105,396
|
|
|
175,228
|
|
|
333,126
|
|
Income tax
expense(b)
|
23,130
|
|
|
23,656
|
|
|
35,101
|
|
|
49,141
|
|
Income from
continuing operations before equity in net income of unconsolidated
investments
|
98,641
|
|
|
81,740
|
|
|
140,127
|
|
|
283,985
|
|
Equity in net income
of unconsolidated investments (net of
tax)
|
15,048
|
|
|
13,846
|
|
|
36,219
|
|
|
29,837
|
|
Net income from
continuing operations
|
113,689
|
|
|
95,586
|
|
|
176,346
|
|
|
313,822
|
|
Loss from
discontinued operations (net of tax)(c)
|
—
|
|
|
(398,340)
|
|
|
—
|
|
|
(381,028)
|
|
Net income
(loss)
|
113,689
|
|
|
(302,754)
|
|
|
176,346
|
|
|
(67,206)
|
|
Net income
attributable to noncontrolling interests
|
(10,356)
|
|
|
(12,067)
|
|
|
(21,800)
|
|
|
(19,429)
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
103,333
|
|
|
$
|
(314,821)
|
|
|
$
|
154,546
|
|
|
$
|
(86,635)
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.93
|
|
|
$
|
0.74
|
|
|
$
|
1.39
|
|
|
$
|
2.62
|
|
Discontinued
operations
|
—
|
|
|
(3.54)
|
|
|
—
|
|
|
(3.39)
|
|
|
$
|
0.93
|
|
|
$
|
(2.80)
|
|
|
$
|
1.39
|
|
|
$
|
(0.77)
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.92
|
|
|
$
|
0.74
|
|
|
$
|
1.37
|
|
|
$
|
2.61
|
|
Discontinued
operations
|
—
|
|
|
(3.52)
|
|
|
—
|
|
|
(3.38)
|
|
|
$
|
0.92
|
|
|
$
|
(2.78)
|
|
|
$
|
1.37
|
|
|
$
|
(0.77)
|
|
Weighted-average
common shares outstanding – basic
|
110,686
|
|
|
112,339
|
|
|
111,336
|
|
|
112,300
|
|
Weighted-average
common shares outstanding – diluted
|
112,105
|
|
|
113,175
|
|
|
112,697
|
|
|
112,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes to the condensed consolidated financial
information.
|
Albemarle Corporation
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(In Thousands)
(Unaudited)
|
|
|
June
30,
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
1,006,945
|
|
|
$
|
2,269,756
|
|
Other current
assets
|
1,197,503
|
|
|
1,036,862
|
|
Total current
assets
|
2,204,448
|
|
|
3,306,618
|
|
Property, plant and
equipment
|
4,049,070
|
|
|
3,910,522
|
|
Less accumulated
depreciation and amortization
|
1,632,241
|
|
|
1,550,382
|
|
Net property, plant
and equipment
|
2,416,829
|
|
|
2,360,140
|
|
Other assets and
intangibles
|
2,670,712
|
|
|
2,494,449
|
|
Total
assets
|
$
|
7,291,989
|
|
|
$
|
8,161,207
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current portion of
long-term debt
|
$
|
307,109
|
|
|
$
|
247,544
|
|
Other current
liabilities
|
676,553
|
|
|
892,559
|
|
Total current
liabilities
|
983,662
|
|
|
1,140,103
|
|
Long-term
debt
|
1,421,468
|
|
|
2,121,718
|
|
Other noncurrent
liabilities
|
560,504
|
|
|
544,043
|
|
Deferred income
taxes
|
426,564
|
|
|
412,739
|
|
Albemarle Corporation
shareholders' equity
|
3,760,830
|
|
|
3,795,062
|
|
Noncontrolling
interests
|
138,961
|
|
|
147,542
|
|
Total liabilities and
equity
|
$
|
7,291,989
|
|
|
$
|
8,161,207
|
|
|
See accompanying
notes to the condensed consolidated financial
information.
|
Albemarle Corporation
and Subsidiaries
|
Selected Consolidated
Cash Flow Data
|
(In Thousands)
(Unaudited)
|
|
|
Six Months
Ended
|
|
June
30,
|
|
2017
|
|
2016
|
Cash and cash
equivalents at beginning of year
|
$
|
2,269,756
|
|
|
$
|
213,734
|
|
Cash and cash
equivalents at end of period
|
$
|
1,006,945
|
|
|
$
|
193,661
|
|
Sources of cash
and cash equivalents:
|
|
|
|
Net income
(loss)
|
$
|
176,346
|
|
|
$
|
(67,206)
|
|
Cash proceeds from
divestitures, net
|
6,857
|
|
|
310,599
|
|
Other borrowings,
net
|
58,886
|
|
|
67,865
|
|
Dividends received
from unconsolidated investments and nonmarketable
securities
|
8,454
|
|
|
31,522
|
|
Proceeds from exercise
of stock options
|
3,337
|
|
|
4,939
|
|
Uses of cash and
cash equivalents:
|
|
|
|
Working capital
changes
|
(353,138)
|
|
|
(108,016)
|
|
Capital
expenditures
|
(97,765)
|
|
|
(99,509)
|
|
Acquisitions, net of
cash acquired
|
(39,525)
|
|
|
—
|
|
Cash payments related
to acquisitions and other
|
—
|
|
|
(81,988)
|
|
Repayments of
long-term debt
|
(751,209)
|
|
|
(382,162)
|
|
Repurchases of common
stock
|
(250,000)
|
|
|
—
|
|
Pension and
postretirement contributions
|
(6,288)
|
|
|
(9,524)
|
|
Dividends paid to
shareholders
|
(69,762)
|
|
|
(66,791)
|
|
Fees related to early
extinguishment of debt
|
(46,959)
|
|
|
—
|
|
Dividends paid to
noncontrolling interests
|
(17,930)
|
|
|
(17,052)
|
|
Non-cash and other
items:
|
|
|
|
Depreciation and
amortization
|
94,192
|
|
|
128,505
|
|
Gain on sales of
businesses, net
|
—
|
|
|
(122,298)
|
|
Gain on
acquisition
|
(7,433)
|
|
|
—
|
|
Pension and
postretirement (benefit) expense
|
(7)
|
|
|
3,390
|
|
Loss on early
extinguishment of debt
|
52,801
|
|
|
—
|
|
Deferred income
taxes
|
(3,204)
|
|
|
414,736
|
|
Equity in net income
of unconsolidated investments (net of tax)
|
(36,219)
|
|
|
(30,861)
|
|
|
|
|
|
|
|
See accompanying
notes to the condensed consolidated financial
information.
|
Albemarle Corporation
and Subsidiaries
|
Consolidated Summary
of Segment Results
|
(In Thousands)
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales:
|
|
|
|
|
|
|
|
Lithium and Advanced
Materials
|
$
|
317,859
|
|
|
$
|
233,353
|
|
|
$
|
602,234
|
|
|
$
|
449,526
|
|
Bromine
Specialties
|
203,945
|
|
|
206,863
|
|
|
423,136
|
|
|
403,416
|
|
Refining
Solutions
|
184,217
|
|
|
178,012
|
|
|
369,629
|
|
|
348,591
|
|
All Other
|
30,704
|
|
|
50,626
|
|
|
63,123
|
|
|
122,715
|
|
Corporate
|
533
|
|
|
473
|
|
|
1,199
|
|
|
2,290
|
|
Total net
sales
|
$
|
737,258
|
|
|
$
|
669,327
|
|
|
$
|
1,459,321
|
|
|
$
|
1,326,538
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Lithium and Advanced
Materials
|
$
|
132,549
|
|
|
$
|
82,668
|
|
|
$
|
252,571
|
|
|
$
|
169,142
|
|
Bromine
Specialties
|
62,075
|
|
|
66,562
|
|
|
130,563
|
|
|
128,170
|
|
Refining
Solutions
|
50,078
|
|
|
61,586
|
|
|
99,657
|
|
|
116,660
|
|
All Other
|
2,444
|
|
|
876
|
|
|
7,600
|
|
|
9,340
|
|
Corporate(a)
|
(28,205)
|
|
|
(21,221)
|
|
|
(60,074)
|
|
|
(40,808)
|
|
Total adjusted
EBITDA
|
$
|
218,941
|
|
|
$
|
190,471
|
|
|
$
|
430,317
|
|
|
$
|
382,504
|
|
|
|
Lithium and Advanced
Materials - details by product category:
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales:
|
|
|
|
|
|
|
|
Lithium
|
$
|
243,821
|
|
|
$
|
157,713
|
|
|
$
|
460,050
|
|
|
$
|
294,273
|
|
PCS
|
74,038
|
|
|
75,640
|
|
|
142,184
|
|
|
155,253
|
|
Total Lithium and
Advanced Materials
|
$
|
317,859
|
|
|
$
|
233,353
|
|
|
$
|
602,234
|
|
|
$
|
449,526
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Lithium
|
$
|
115,200
|
|
|
$
|
64,146
|
|
|
$
|
215,052
|
|
|
$
|
127,980
|
|
PCS
|
17,349
|
|
|
18,522
|
|
|
37,519
|
|
|
41,162
|
|
Total Lithium and
Advanced Materials
|
$
|
132,549
|
|
|
$
|
82,668
|
|
|
$
|
252,571
|
|
|
$
|
169,142
|
|
|
See accompanying
notes to the condensed consolidated financial information and
non-GAAP reconciliations below.
|
Notes to the Condensed Consolidated Financial Information
(a) Non-operating pension and OPEB items, consisting of MTM
actuarial gains/losses, settlements/curtailments, interest cost and
expected return on assets, are not allocated to our reportable
segments and are included in the Corporate category. Although
non-operating pension and OPEB items are included in Cost of goods
sold and Selling, general and administrative expenses in accordance
with GAAP, we believe that these components of pension cost are
mainly driven by market performance, and we manage these separately
from the operational performance of our businesses. Non-operating
pension and OPEB items included in Cost of goods sold and Selling,
general and administrative expenses were as follows (in
millions):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cost of goods
sold:
|
|
|
|
|
|
|
|
Interest cost and
expected return on assets, net
|
$
|
(0.2)
|
|
|
$
|
(0.2)
|
|
|
$
|
(0.3)
|
|
|
$
|
(0.3)
|
|
Total
|
$
|
(0.2)
|
|
|
$
|
(0.2)
|
|
|
$
|
(0.3)
|
|
|
$
|
(0.3)
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses:
|
|
|
|
|
|
|
|
Interest cost and
expected return on assets, net
|
$
|
(0.9)
|
|
|
$
|
(0.1)
|
|
|
$
|
(1.8)
|
|
|
$
|
(0.2)
|
|
Total
|
$
|
(0.9)
|
|
|
$
|
(0.1)
|
|
|
$
|
(1.8)
|
|
|
$
|
(0.2)
|
|
(b) In addition to the non-operating pension and OPEB items
disclosed above, we have identified certain other items from
continuing operations and excluded them from our adjusted net
income calculation for the periods presented. A listing of these
items, as well as a detailed description of each follows below (per
diluted share):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Utilization of
inventory markup(1)
|
$
|
0.08
|
|
|
$
|
—
|
|
|
$
|
0.16
|
|
|
$
|
—
|
|
Restructuring and
other, net(2)
|
0.02
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
Acquisition and
integration related costs(3)
|
0.04
|
|
|
0.11
|
|
|
0.15
|
|
|
0.23
|
|
Gain on sales of
businesses, net(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.02)
|
|
Gain on
acquisition(5)
|
—
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
Loss on
extinguishment of debt(6)
|
—
|
|
|
—
|
|
|
0.34
|
|
|
—
|
|
Multiemployer plan
shortfall contributions(7)
|
0.03
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
Other(8)
|
0.02
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
Discrete tax
items(9)
|
0.02
|
|
|
0.08
|
|
|
0.03
|
|
|
0.06
|
|
Total non-recurring
and other unusual items
|
$
|
0.21
|
|
|
$
|
0.19
|
|
|
$
|
0.82
|
|
|
$
|
(0.73)
|
|
(1) In connection with the
acquisition of the lithium hydroxide and lithium carbonate
conversion business of Jiangxi Jiangli New Materials Science and
Technology Co. Ltd. ("Jiangli New Materials"), the Company valued
inventory purchased from Jiangli New Materials at fair value, which
resulted in a markup of the underlying net book value of the
inventory totaling approximately $23.0
million. The inventory markup is being expensed over the
estimated remaining selling period. For the three and six months
ended June 30, 2017, $11.9 million and $22.5
million ($8.9 million and
$17.5 million after income taxes, or
$0.08 and $0.16 per share), respectively, was included in
Cost of goods sold related to the utilization of the inventory
markup.
(2) Included in Selling,
general and administrative expenses for the three months ended
June 30, 2017 is $4.2 million ($2.8
million after income taxes, or $0.02 per share) related to restructuring costs
at several locations. Included in Cost of goods sold, Selling,
general and administrative expenses and Research and development
expenses for the six months ended June 30,
2017 is $2.9 million,
$8.4 million and $5.8 million, respectively, related to
restructuring costs in each of our reportable segments at several
locations, primarily at our Lithium site in Germany. After income taxes, these charges
totaled $13.0 million, or
$0.11 per share.
(3) Acquisition and
integration related costs for the three and six months ended
June 30, 2017 of $1.8 million and $10.7
million, respectively, were included in Cost of goods sold
and $4.7 million and $10.1 million, respectively, were included in
Selling, general and administrative expenses primarily resulting
from the acquisition of Jiangli New Materials. After income taxes,
these charges totaled $4.8 million,
or $0.04 per share, and $17.6 million, or $0.15 per share, for the three and six months
ended June 30, 2017,
respectively.
Included in Acquisition and
integration related costs for the three and six months ended
June 30, 2016 is $18.4 million and $36.1
million, respectively, of integration costs resulting from
the acquisition of Rockwood, and $0.6
million and $1.5 million,
respectively, in connection with other significant projects. After
income taxes, these charges totaled $13.1
million, or $0.11 per share
and $26.4 million, or $0.23 per share, for the three and six months
ended June 30, 2016,
respectively.
(4) Included in Gain on sales
of businesses, net, for the six months ended June 30, 2016 is $11.5
million ($11.3 million after
income taxes, or $0.10 per share)
related to the sale of the metal sulfides business and $112.3 million ($105.8
million after income taxes, or $0.93 per share) related to the sale of the
minerals-based flame retardants and specialty chemicals businesses.
In addition, Gain on sales of businesses, net, for the six months
ended June 30, 2016 includes a loss
of $1.5 million, or $0.01 per share, on the sale of our wafer reclaim
business.
(5) Included in Other
expenses, net, for the six months ended June
30, 2017 is $7.4 million
($6.0 million after income taxes, or
$0.05 per share) relating to the
acquisition of the remaining 50% interest in the Sales de Magnesio
Ltda. joint venture in Chile. The
gain was calculated based on the difference between the purchase
price and the book value of the investment.
(6) Included in Interest and
financing expenses for the six months ended June 30, 2017 is a loss on early extinguishment
of debt of $52.8 million
($38.1 million after income taxes, or
$0.34 per share) related to the
tender premiums, fees, unamortized discounts and unamortized
deferred financings costs from the redemption of the 3.00% Senior
notes, €307.0 million of the 1.875% Senior notes and $174.7 million of the 4.50% Senior notes.
(7) Included in Selling, general
and administrative expenses for the three and six months ended
June 30, 2017 is $2.0 million ($1.4
million after income taxes, or $0.01 per share) for increased capital reserve
contributions to a multiemployer plan, which is subject to a
financial improvement plan. In addition, capital reserve
contributions for this multiemployer plan of $2.9 million ($2.2
million after income taxes, or $0.02 per share), included in Other expenses,
net, have been made to indemnify previously divested
businesses.
(8) Other adjustments for the
three and six months ended June 30,
2017 included amounts recorded in (1) Selling, general and
administrative expenses related to a reversal of an accrual
recorded as part of purchase accounting from a previous acquisition
of $1.0 million; and (2) Other
expenses, net related to final settlement claims associated with
the previous disposal of a business of $2.0
million and the revision of tax indemnification expenses of
$1.2 million primarily related to a
competent authority agreement for a previously disposed business.
Also included in Other expenses, net, for the six months ended
June 30, 2017 is $3.2 million of asset retirement obligation
charges related to the revision of an estimate at a site formerly
owned by Albemarle and a loss of
$2.1 million associated with the
previous disposal of a business. After income taxes, these charges
totaled $1.6 million, or $0.02 per share, and $5.6
million, or $0.05 per share,
for the three and six months ended June 30,
2017, respectively.
(9) Included in Income tax
expense for the three and six months ended June 30, 2017 are discrete net tax expenses of
$2.2 million, or $0.02 per share, and $3.1
million, or $0.03 per share,
respectively. The net expense for the three months is primarily
related to foreign rate changes of $13.9
million, partially offset by a $9.8
million benefit from the release of valuation allowances due
to a foreign restructuring plan. The net expense for the six months
is primarily related to foreign rate changes of $13.1 million and a loss from prior year true up
of $5.1 million, partially offset by
a $9.8 million benefit from the
release of valuation allowances due to a foreign restructuring plan
and a $4.7 million benefit from
excess tax benefits realized from stock-based compensation
arrangements. Included in Income tax expense for the three and six
months ended June 30, 2016 are
expense items of $8.7 million, or
$0.08 per share, and $7.1 million, or $0.06 per share, respectively, related mainly to
a change in the Company's assertion over book and tax basis
differences of a foreign entity.
(c) On June 17, 2016, the Company entered into a definitive
agreement to sell the Chemetall Surface Treatment business to BASF
SE. On December 14, 2016, the Company closed the sale of this
business for cash proceeds of approximately $3.1 billion, net of
purchase price adjustments. Loss from discontinued operations (net
of tax) in the consolidated statements of income (loss) for the
second quarter of 2016 includes a discrete non-cash charge of
$381.5 million due to a change in the Company's assertion over book
and tax basis differences related to a U.S. entity being sold, as
well as a discrete non-cash charge of $35.2 million related to a
change in the Company's assertion over reinvestment of foreign
undistributed earnings.
(d) Totals may not add due to rounding.
Additional Information
It should be noted that adjusted net income from continuing
operations, adjusted diluted earnings per share attributable to
Albemarle Corporation, adjusted diluted earnings per share from
continuing operations, non-operating pension and OPEB items per
diluted share, non-recurring and other unusual items per diluted
share, adjusted effective income tax rates, EBITDA, adjusted
EBITDA, EBITDA margin and adjusted EBITDA margin are financial
measures that are not required by, or presented in accordance with,
accounting principles generally accepted in the United States, or GAAP. These non-GAAP
measures should not be considered as alternatives to net income
attributable to Albemarle Corporation ("earnings"). These measures
are presented here to provide additional useful measurements to
review our operations, provide transparency to investors and enable
period-to-period comparability of financial performance. The
Company's chief operating decision maker uses these measures to
assess the ongoing performance of the Company and its segments, as
well as for business and enterprise planning purposes.
A description of other non-GAAP financial measures that we use
to evaluate our operations and financial performance, and
reconciliation of these non-GAAP financial measures to the most
directly comparable financial measures calculated and reported in
accordance with GAAP, can be found in the Investors section of our
website at www.albemarle.com, under "Non-GAAP Reconciliations"
under "Financials." Also, see the following pages for supplemental
reconciliations of the non-GAAP financial measures to the most
directly comparable financial measures calculated and reported in
accordance with GAAP. The Company does not provide a reconciliation
of forward looking non-GAAP financial measures to the most directly
comparable financial measures calculated and reported in accordance
with GAAP, as the Company is unable to estimate significant
non-recurring or unusual items without unreasonable effort. The
amounts and timing of these items are uncertain and could be
material to the Company's results calculated in accordance with
GAAP.
ALBEMARLE
CORPORATION AND SUBSIDIARIES
Non-GAAP
Reconciliations
(In
Thousands)
(Unaudited)
See below for a reconciliation of adjusted net income from
continuing operations, EBITDA and adjusted EBITDA, the non-GAAP
financial measures, to Net income (loss) attributable to Albemarle
Corporation ("earnings"), the most directly comparable financial
measure calculated and reported in accordance with GAAP. Adjusted
earnings is defined as earnings before the non-recurring, other
unusual and non-operating pension and OPEB items as listed below.
EBITDA is defined as earnings before discontinued operations,
interest and financing expenses, income taxes, and depreciation and
amortization. Adjusted EBITDA is defined as EBITDA and the
non-recurring, other unusual and non-operating pension and OPEB
items as listed below.
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
103,333
|
|
|
$
|
(314,821)
|
|
|
$
|
154,546
|
|
|
$
|
(86,635)
|
|
Add back:
|
|
|
|
|
|
|
|
Loss from discontinued
operations (net of tax)
|
—
|
|
|
398,340
|
|
|
—
|
|
|
381,028
|
|
Earnings from
continuing operations
|
103,333
|
|
|
83,519
|
|
|
154,546
|
|
|
294,393
|
|
Add back:
|
|
|
|
|
|
|
|
Non-operating pension
and OPEB items from continuing operations
(net of tax)
|
(589)
|
|
|
(225)
|
|
|
(1,399)
|
|
|
(106)
|
|
Non-recurring and
other unusual items from continuing operations (net of
tax)
|
23,738
|
|
|
21,780
|
|
|
92,343
|
|
|
(82,048)
|
|
Adjusted net income
from continuing operations
|
$
|
126,482
|
|
|
$
|
105,074
|
|
|
$
|
245,490
|
|
|
$
|
212,239
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share from continuing operations
|
$
|
1.13
|
|
|
$
|
0.93
|
|
|
$
|
2.18
|
|
|
$
|
1.88
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – diluted
|
112,105
|
|
|
113,175
|
|
|
112,697
|
|
|
112,973
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
103,333
|
|
|
$
|
(314,821)
|
|
|
$
|
154,546
|
|
|
$
|
(86,635)
|
|
Add back:
|
|
|
|
|
|
|
|
Loss from discontinued
operations (net of tax)
|
—
|
|
|
398,340
|
|
|
—
|
|
|
381,028
|
|
Interest and financing
expenses
|
14,590
|
|
|
15,800
|
|
|
83,103
|
|
|
30,914
|
|
Income tax
expense
|
23,130
|
|
|
23,656
|
|
|
35,101
|
|
|
49,141
|
|
Depreciation and
amortization
|
49,122
|
|
|
49,705
|
|
|
94,192
|
|
|
93,314
|
|
EBITDA
|
190,175
|
|
|
172,680
|
|
|
366,942
|
|
|
467,762
|
|
Non-operating pension
and OPEB items
|
(1,053)
|
|
|
(265)
|
|
|
(2,116)
|
|
|
(548)
|
|
Non-recurring and
other unusual items (excluding items associated with interest
expense)
|
29,819
|
|
|
18,056
|
|
|
65,491
|
|
|
(84,710)
|
|
Adjusted
EBITDA
|
$
|
218,941
|
|
|
$
|
190,471
|
|
|
$
|
430,317
|
|
|
$
|
382,504
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
737,258
|
|
|
$
|
669,327
|
|
|
$
|
1,459,321
|
|
|
$
|
1,326,538
|
|
EBITDA
margin
|
25.8
|
%
|
|
25.8
|
%
|
|
25.1
|
%
|
|
35.3
|
%
|
Adjusted EBITDA
margin
|
29.7
|
%
|
|
28.5
|
%
|
|
29.5
|
%
|
|
28.8
|
%
|
See below for a reconciliation of adjusted EBITDA on a segment
basis, the non-GAAP financial measure, to Net income attributable
to Albemarle Corporation, the most directly comparable financial
measure calculated and reporting in accordance with GAAP.
|
Lithium
and
Advanced
Materials
|
|
Bromine
Specialties
|
|
Refining
Solutions
|
|
Reportable
Segments
Total
|
|
All
Other
|
|
Corporate
|
|
Consolidated
Total
|
|
% of
Net
Sales
|
Three months ended
June 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
95,350
|
|
|
$
|
51,739
|
|
|
$
|
40,463
|
|
|
$
|
187,552
|
|
|
$
|
152
|
|
|
$
|
(84,371)
|
|
|
$
|
103,333
|
|
|
14.0
|
%
|
Depreciation and
amortization
|
25,278
|
|
|
10,336
|
|
|
9,615
|
|
|
45,229
|
|
|
2,292
|
|
|
1,601
|
|
|
49,122
|
|
|
6.7
|
%
|
Non-recurring and
other unusual items
|
11,921
|
|
|
—
|
|
|
—
|
|
|
11,921
|
|
|
—
|
|
|
17,898
|
|
|
29,819
|
|
|
4.0
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,590
|
|
|
14,590
|
|
|
2.0
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,130
|
|
|
23,130
|
|
|
3.1
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,053)
|
|
|
(1,053)
|
|
|
(0.1)
|
%
|
Adjusted
EBITDA
|
$
|
132,549
|
|
|
$
|
62,075
|
|
|
$
|
50,078
|
|
|
$
|
244,702
|
|
|
$
|
2,444
|
|
|
$
|
(28,205)
|
|
|
$
|
218,941
|
|
|
29.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
56,880
|
|
|
$
|
56,747
|
|
|
$
|
52,472
|
|
|
$
|
166,099
|
|
|
$
|
(1,503)
|
|
|
$
|
(479,417)
|
|
|
$
|
(314,821)
|
|
|
(47.0)
|
%
|
Depreciation and
amortization
|
25,788
|
|
|
9,815
|
|
|
9,114
|
|
|
44,717
|
|
|
3,353
|
|
|
1,635
|
|
|
49,705
|
|
|
7.4
|
%
|
Non-recurring and
other unusual items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(974)
|
|
|
19,030
|
|
|
18,056
|
|
|
2.7
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,800
|
|
|
15,800
|
|
|
2.4
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,656
|
|
|
23,656
|
|
|
3.5
|
%
|
Loss from
discontinued operations (net of tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
398,340
|
|
|
398,340
|
|
|
59.5
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(265)
|
|
|
(265)
|
|
|
—
|
%
|
Adjusted
EBITDA
|
$
|
82,668
|
|
|
$
|
66,562
|
|
|
$
|
61,586
|
|
|
$
|
210,816
|
|
|
$
|
876
|
|
|
$
|
(21,221)
|
|
|
$
|
190,471
|
|
|
28.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
189,456
|
|
|
$
|
110,433
|
|
|
$
|
80,937
|
|
|
$
|
380,826
|
|
|
$
|
3,398
|
|
|
$
|
(229,678)
|
|
|
$
|
154,546
|
|
|
10.6
|
%
|
Depreciation and
amortization
|
48,021
|
|
|
20,130
|
|
|
18,720
|
|
|
86,871
|
|
|
4,202
|
|
|
3,119
|
|
|
94,192
|
|
|
6.4
|
%
|
Non-recurring and
other unusual items
(excluding items associated with interest
expense)
|
15,094
|
|
|
—
|
|
|
—
|
|
|
15,094
|
|
|
—
|
|
|
50,397
|
|
|
65,491
|
|
|
4.5
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83,103
|
|
|
83,103
|
|
|
5.7
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,101
|
|
|
35,101
|
|
|
2.4
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,116)
|
|
|
(2,116)
|
|
|
(0.1)
|
%
|
Adjusted
EBITDA
|
$
|
252,571
|
|
|
$
|
130,563
|
|
|
$
|
99,657
|
|
|
$
|
482,791
|
|
|
$
|
7,600
|
|
|
$
|
(60,074)
|
|
|
$
|
430,317
|
|
|
29.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
120,207
|
|
|
$
|
108,600
|
|
|
$
|
98,786
|
|
|
$
|
327,593
|
|
|
$
|
129,206
|
|
|
$
|
(543,434)
|
|
|
$
|
(86,635)
|
|
|
(6.5)
|
%
|
Depreciation and
amortization
|
48,935
|
|
|
19,570
|
|
|
17,874
|
|
|
86,379
|
|
|
3,965
|
|
|
2,970
|
|
|
93,314
|
|
|
7.0
|
%
|
Non-recurring and
other unusual items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(123,831)
|
|
|
39,121
|
|
|
(84,710)
|
|
|
(6.4)
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,914
|
|
|
30,914
|
|
|
2.3
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,141
|
|
|
49,141
|
|
|
3.7
|
%
|
Loss from
discontinued operations (net of tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
381,028
|
|
|
381,028
|
|
|
28.7
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(548)
|
|
|
(548)
|
|
|
—
|
%
|
Adjusted
EBITDA
|
$
|
169,142
|
|
|
$
|
128,170
|
|
|
$
|
116,660
|
|
|
$
|
413,972
|
|
|
$
|
9,340
|
|
|
$
|
(40,808)
|
|
|
$
|
382,504
|
|
|
28.8
|
%
|
|
Lithium
|
|
PCS
|
|
Total
Lithium
and
Advanced
Materials
|
Three months ended
June 30, 2017:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
81,819
|
|
|
$
|
13,531
|
|
|
$
|
95,350
|
|
Depreciation and
amortization
|
21,460
|
|
|
3,818
|
|
|
25,278
|
|
Non-recurring and
other unusual items
|
11,921
|
|
|
—
|
|
|
11,921
|
|
Adjusted
EBITDA
|
$
|
115,200
|
|
|
$
|
17,349
|
|
|
$
|
132,549
|
|
|
|
|
|
|
|
Three months ended
June 30, 2016:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
42,129
|
|
|
$
|
14,751
|
|
|
$
|
56,880
|
|
Depreciation and
amortization
|
22,017
|
|
|
3,771
|
|
|
25,788
|
|
Adjusted
EBITDA
|
$
|
64,146
|
|
|
$
|
18,522
|
|
|
$
|
82,668
|
|
|
|
|
|
|
|
Six months ended
June 30, 2017:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
159,433
|
|
|
$
|
30,023
|
|
|
$
|
189,456
|
|
Depreciation and
amortization
|
40,525
|
|
|
7,496
|
|
|
48,021
|
|
Non-recurring and
other unusual items
|
15,094
|
|
|
—
|
|
|
15,094
|
|
Adjusted
EBITDA
|
$
|
215,052
|
|
|
$
|
37,519
|
|
|
$
|
252,571
|
|
|
|
|
|
|
|
Six months ended
June 30, 2016:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
86,475
|
|
|
$
|
33,732
|
|
|
$
|
120,207
|
|
Depreciation and
amortization
|
41,505
|
|
|
7,430
|
|
|
48,935
|
|
Adjusted
EBITDA
|
$
|
127,980
|
|
|
$
|
41,162
|
|
|
$
|
169,142
|
|
See below for a reconciliation of the adjusted effective income
tax rate, the non-GAAP financial measure, to the effective income
tax rate, the most directly comparable financial measure calculated
and reporting in accordance with GAAP.
|
Income from
continuing
operations before
income taxes and
equity in net income
of unconsolidated
investments
|
|
Income tax
expense
|
|
Effective income
tax rate
|
Three months ended
June 30, 2017:
|
|
|
|
|
|
As
reported
|
$
|
121,771
|
|
|
$
|
23,130
|
|
|
19.0
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items from continuing operations
|
28,766
|
|
|
5,617
|
|
|
|
As
adjusted
|
$
|
150,537
|
|
|
$
|
28,747
|
|
|
19.1
|
%
|
|
|
|
|
|
|
Three months ended
June 30, 2016:
|
|
|
|
|
|
As
reported
|
$
|
105,396
|
|
|
$
|
23,656
|
|
|
22.4
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items from continuing operations
|
17,791
|
|
|
(3,764)
|
|
|
|
As
adjusted
|
$
|
123,187
|
|
|
$
|
19,892
|
|
|
16.2
|
%
|
|
|
|
|
|
|
Six months ended
June 30, 2017:
|
|
|
|
|
|
As
reported
|
$
|
175,228
|
|
|
$
|
35,101
|
|
|
20.0
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items from continuing operations
|
116,176
|
|
|
25,232
|
|
|
|
As
adjusted
|
$
|
291,404
|
|
|
$
|
60,333
|
|
|
20.7
|
%
|
|
|
|
|
|
|
Six months ended
June 30, 2016:
|
|
|
|
|
|
As
reported
|
$
|
333,126
|
|
|
$
|
49,141
|
|
|
14.8
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items from continuing operations
|
(85,258)
|
|
|
(3,104)
|
|
|
|
As
adjusted
|
$
|
247,868
|
|
|
$
|
46,037
|
|
|
18.6
|
%
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/albemarle-growth-story-continues-with-strong-second-quarter-performance-300500646.html
SOURCE Albemarle Corporation